Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system.

A typical departmental cost report for a recent period follows:

Assembly Department Cost Report For the Month Ended March 31
	Actual Results		Planning Budget		Variances
Machine-hours		40,000		45,000
Variable costs:
Supplies	$	37,400	$	40,500	$	3,100	F
Scrap		26,600		27,000		400	F
Indirect materials		67,000		72,000		5,000	F
Fixed costs:
Wages and salaries		87,350		88,000		650	F
Equipment depreciation		68,000		68,000
Total cost	$	286,350	$	295,500	$	9,150	F

After receiving a copy of this cost report, the supervisor of the Assembly Department stated, These reports are super. It makes me feel really good to see how well things are going in my department. I cant understand why those people upstairs complain so much about the reports.

For the last several years, the companys marketing department has chronically failed to meet the sales goals expressed in the companys monthly budgets.

Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Machine-hours (q) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Planning spending variances Flexible Activity variances Budget Results Budget 45,000 40,000 37400 40,500 26,600 27,000 67,000 72,000 87,350 88,000 68,000 68,000 S 286,350 295,500